* Banks accused of rigging municipal derivatives prices
* More than $226 million settlements reached overall
* Natixis , Societe Generale settle with U.S. states
(Adds Natixis, Societe Generale settlements with U.S. states;
adds second byline)
By Jonathan Stempel and Sarah N. Lynch
NEW YORK, Feb 24 (Reuters) - UBS AG UBSG.VX and five other
banks and brokerages agreed to pay roughly $103 million to
settle claims that they conspired to rig prices for U.S.
municipal securities.
Wednesday's accords include payments of $100.5 million to
investors. Two of the defendants, France's Natixis SA CNAT.PA
and Societe Generale SOGN.PA , also agreed to pay $2.8 million
to resolve related claims by 21 U.S. states and Washington, D.C.
If approved by a federal judge, the private settlements
would end nearly eight years of class action litigation, and
result in more than $226 million of payouts from 11 defendants,
led by $44.6 million from JPMorgan Chase & Co (N:JPM) JPM.N .
Several banks have during that time also agreed to pay more
than $740 million, led by JPMorgan's $228 million, to resolve
related probes by the U.S. Department of Justice and state
regulators. At least 17 people were convicted or pleaded guilty,
the Justice Department has said.
The investor plaintiffs, including the City of Baltimore and
the Central Bucks School District in Pennsylvania, accused banks
of conspiring to fix prices for municipal derivatives, causing
them to receive lower interest rates than they would have gotten
in a competitive marketplace.
Municipalities and school districts that sell bonds often
invest proceeds they do not need to spend immediately elsewhere,
or enter contracts to hedge interest rate risks, and hire banks
and brokers to seek out competitive bids.
The defendants were accused of abusing this process through
such means as getting advance peeks at their rivals' bids, or
purposely submitting non-winning bids.
"We will not tolerate this type of misconduct at any level,"
said New York Attorney General Eric Schneiderman, who announced
the states' settlement with Natixis and Societe Generale.
Wednesday's private settlements included $32 million with
UBS, $28.45 million with Natixis, $25.41 million with Societe
Generale, $9.75 million with Piper Jaffray Cos PJC.N , $3.5
million with Royal Bank of Scotland Group Plc's RBS.L National
Westminster Bank, and $1.4 million with George K. Baum & Co,
court papers show.
The defendants denied wrongdoing. Their settlements require
approval by U.S. District Judge Victor Marrero in Manhattan.
Other defendants that have settled with investors and
regulators are Wells Fargo (N:WFC) & Co WFC.N , Bank of America Corp (N:BAC)
BAC.N and General Electric (N:GE) Co GE.N , UBS has also settled
with regulators, and Morgan Stanley (N:MS) MS.N with investors.
A lawyer for the investor plaintiffs did not immediately
respond to requests for comment.
The case is In re: Municipal Derivatives Antitrust
Litigation, U.S. District Court, Southern District of New York,
No. 08-02516.